S&P upgrades RioCan notes to BBB

S&P said it raised its issue-level ratings on RioCan Real Estate Investment Trust's senior unsecured notes to BBB from BBB-.

The agency said it based the upgrade on the company's meaningful reduction of secured debt over the past year and includes the expectation that RioCan will further pay down mortgage obligations such that it will generate more than 50% of net operating income (NOI) from unencumbered assets.

As per S&P’s criteria, when the percentage of encumbered assets exceeds 50%, it rates the senior unsecured debt issues one notch below the corporate credit rating.

All other ratings on the company, including the BBB corporate credit rating, are unchanged.

The outlook remains stable.

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